FMCG – Significant Slowdown in Retail Sales

FMCG sales grew 5.9% YoY in October 2009 (the slowest growth since Feb-07) compared to 14.8% growth in F1H10. The TOP10 players witnessed deceleration in sales growth, with sales in October growing 1.7% vs. 9.9% growth in F1H10.

Hindustan Unilever witnessed a deceleration in sales across its major categories (viz. laundry bars, toothpastes, soaps, shampoos, tea, laundry powder, and skincare), leading to de-growth of 0.4% (vs. 8.1% in F1H10) for the first time since February 2007.

Dabur witnessed a deceleration in revenue growth, from 9.6% in F1H10 to 3.9% in October 2009.

Colgate’s sales growth in toothpaste and toothpowder slowed down, leading to overall growth of 5.9% vs. 10.5% growth in F1H10.